BILL NUMBER: SCA 30	CHAPTERED
	BILL TEXT

	CHAPTER  167
	FILED WITH SECRETARY OF STATE  SEPTEMBER 22, 2008
	PASSED THE SENATE  SEPTEMBER 19, 2008
	PASSED THE ASSEMBLY  SEPTEMBER 19, 2008

INTRODUCED BY   Senator Ashburn

                        SEPTEMBER 19, 2008

   A resolution directing the Secretary of State to make amendments
in Senate Constitutional Amendment No. 13 (Resolution Chapter 144 of
the Statutes of 2008).



	LEGISLATIVE COUNSEL'S DIGEST


   SCA 30, Ashburn. State finance.
   Senate Constitutional Amendment No. 13 of the 2007-08 Regular
Session would, if adopted by the people, amend Section 20 of Article
XVI of the California Constitution relative to state finance. That
measure would rename the Budget Stabilization Account the Budget
Stabilization Fund and would provide that all moneys in the fund not
designated for deposit into the Deficit Recovery Bond Retirement
Sinking Fund Subaccount may be transferred to the General Fund by a
statute that contains no unrelated provisions or may be loaned to the
General Fund to address a General Fund cashflow deficit.
   This measure would instead provide that, apart from a transfer
made for the purpose of responding to an emergency declared by the
Governor, as defined, or loaned and repaid within a fiscal year to
meet General Fund cash requirements, the total amount that may be
transferred from the Budget Stabilization Fund to the General Fund
for any fiscal year shall not exceed the amount derived by
subtracting the General Fund revenues, transfers, and balances
available from the prior fiscal year for that fiscal year from the
total General Fund expenditures for the immediately preceding fiscal
year as adjusted for changes in population and the cost of living, as
defined. This measure would direct the Secretary of State to make
those amendments in SCA 13.



   Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2007-08 Regular Session
commencing on the fourth day of December 2006, two-thirds of the
membership of each house concurring, hereby directs the Secretary of
State to make amendments in Senate Constitutional Amendment No. 13 of
the 2007-08 Regular Session (Resolution Chapter 144 of the Statutes
of 2008) by removing Section 20 of Article XVI of the Constitution,
as proposed in that measure, and replacing that section with the
following Section 20:
  Second--  That Section 20 of Article XVI thereof is amended to
read:
      SEC. 20.  (a) The Budget Stabilization Fund is hereby created
in the General Fund.
   (b) In each fiscal year as specified in paragraphs (1) to (3),
inclusive, the Controller shall transfer from the General Fund to the
Budget Stabilization Fund the following amounts:
   (1) No later than September 30, 2006, a sum equal to 1 percent of
the estimated amount of General Fund revenues for the 2006-07 fiscal
year.
   (2) No later than September 30, 2007, a sum equal to 2 percent of
the estimated amount of General Fund revenues for the 2007-08 fiscal
year.
   (3) On September 30, 2008, and on September 30 annually
thereafter, a sum equal to 3 percent of the estimated amount of
General Fund revenues for the current fiscal year.
   (c) The transfer of moneys shall not be required by subdivision
(b) in any fiscal year to the extent that the resulting balance in
the Budget Stabilization Fund would exceed 12.5 percent of the
General Fund revenues estimate set forth in the budget bill for that
fiscal year, as enacted. The Legislature may, by statute, direct the
Controller, for one or more fiscal years, to transfer into the Budget
Stabilization Fund amounts in excess of the levels prescribed by
this subdivision.
   (d) Subject to any restriction imposed by this section, funds
transferred to the Budget Stabilization Fund shall be deemed to be
General Fund revenues for all purposes of this Constitution.
   (e) The transfer of moneys from the General Fund to the Budget
Stabilization Fund may be suspended or reduced for a fiscal year as
specified by an executive order issued by the Governor no later than
the date of the transfer as set forth in subdivision (b). For a
fiscal year commencing on or after July 1, 2010, this subdivision
shall be operative only if a transfer of moneys from the Budget
Stabilization Fund to the General Fund is authorized pursuant to
subparagraph (A) of paragraph (2) of subdivision (f).
   (f) (1) Of the moneys transferred to the Budget Stabilization Fund
in each fiscal year, 50 percent, up to the aggregate amount of five
billion dollars ($5,000,000,000) for all fiscal years, shall be
deposited in the Deficit Recovery Bond Retirement Sinking Fund
Subaccount, which is hereby created in the Budget Stabilization Fund
for the purpose of retiring deficit recovery bonds authorized and
issued as described in Section 1.3, in addition to any other payments
provided for by law for the purpose of retiring those bonds. The
moneys in the sinking fund subaccount are continuously appropriated
to the Treasurer to be expended for that purpose in the amounts, at
the times, and in the manner deemed appropriate by the Treasurer. Any
funds remaining in the sinking fund subaccount after all of the
deficit recovery bonds are retired shall be transferred to the Budget
Stabilization Fund, and may be transferred to the General Fund
pursuant to paragraph (2).
   (2) All other funds transferred to the Budget Stabilization Fund
in a fiscal year shall not be deposited in the sinking fund
subaccount and may be transferred to the General Fund by statute as
specified in this paragraph.
   (A) Apart from a transfer pursuant to subparagraph (B), the total
amount that may be transferred to the General Fund pursuant to this
paragraph for any fiscal year shall not exceed the amount derived by
subtracting the General Fund revenues, transfers, and balances
available from the prior fiscal year for that fiscal year from the
total General Fund expenditures for the immediately preceding fiscal
year adjusted for the change in population and the change in the cost
of living for the State, as those terms are defined in Section 8 of
Article XIII B, between the immediately preceding fiscal year and the
fiscal year in which the transfer is made. For purposes of this
subparagraph, "General Fund revenues, transfers, and balances
available from the prior fiscal year for that fiscal year" does not
include revenues transferred from the General Fund to the Budget
Stabilization Fund pursuant to subdivision (b) for that fiscal year,
and "total General Fund expenditures for the immediately preceding
fiscal year" does not include the expenditure of unanticipated
revenues pursuant to Section 21.
   (B) Any funds necessary for the purpose of responding to an
emergency declared by the Governor may be transferred by statute. For
purposes of this subparagraph, "emergency" has the same meaning as
set forth in paragraph (2) of subdivision (c) of Section 3 of Article
XIII B.
   (g) In addition to any transfer authorized by this section, funds
in the Budget Stabilization Fund may be loaned and repaid within a
fiscal year to meet General Fund cash requirements.